Russia, which is experiencing difficulties in trade due to Western sanctions, aims to legalize the use of stablecoins in cross-border payments. The Central Bank of Russia is also actively involved in the work.
Russia, which was on the agenda with its anti-cryptocurrency policies for a while, has warmed up to this field, especially with the Western sanctions that came after the Ukraine war, and finally, it is stated that it is planned to legalize the use of fixed coins in cross-border payments in the country.
According to the news from Russian media Izvestia; It was stated that the cryptocurrencies to be used are desired to have low volatility, and therefore, it is aimed to use fixed coins indexed to gold or the US dollar.
“Not a temporary trial, but permanent regulation…”
Alexey Guznov, deputy governor of the Central Bank of Russia, also officially confirmed the work carried out and said:
Our first focus here should be on regulating the transaction chain. Movements such as the transfer of relevant crypto money to Russia, its accumulation and use in cross-border payments should be placed within a certain framework. “We want this to be a permanent arrangement, not a temporary trial.”
It was also written in the news that there is a possibility of using these stable coins in transfers between BRICS countries. The volume of stable coin usage in Russia in the first quarter of 2024 increased to 6.8 trillion dollars. This figure is also equal to the entire year's volume in 2022... So, it is obvious that there is a serious usage situation in the country. It is thought that this volume consists of payments made to China rather than the use of individuals.
Which stablecoin?
The most important issue here is which stablecoin will be used in transfers. Currently, the leading stablecoin in terms of market value and usage is Tether (USDT). However, it is a question mark to what extent the Tether company will welcome Russia, which is blockaded by sanctions by the Western world, to use its stablecoin.
The second largest stablecoin is USDC, issued by the Circle company. The fact that the Circle company is based in the USA also reduces the possibility of its use. In fact, recently, an executive of the Circle company said, regarding compliance with MiCA, "All stable coins that are not regulated by the Western world will disappear" and sent a veiled message to the Tether company.
Therefore, even though it is pegged to the US dollar, Russia will need to deal with a reliable and large stablecoin issuer.
- Uzmancoin